Abacus Bank Accused of Fraud

By

Reed Albergotti

May 31, 2012 11:06 p.m. ET

Manhattan prosecutors have accused a New York City bank of scheming to sell hundreds of millions of dollars' worth of fraudulent mortgages to Fannie Mae, the government-sponsored enterprise that buys home loans.

The indictment against Abacus Federal Savings Bank and 11 of its former employees stems from a probe that began more than two years ago. Another eight former employees waived indictment and admitted wrongdoing, according to...